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Newbury Racecourse, BERKSHIRE

Confidential
Sold

Newbury Racecourse, BERKSHIRE

Description

A rare opportunity to acquire a modern health/leisure investment on the Newbury Racecourse currently producing £661,500 pa (£13.50 psf).

Summary

  • Let to undoubted covenant with 20 years remaining on the lease
  • The property comprises a 49,000 sq ft purpose built modern health and fitness club on a 3.6 acre site having 240 car parking spaces
  • Income of £661,500 pa (£13.50 psf) with review in December 2017
  • Offers are invited in excess of £12,000,000 subject to contract and exclusive of VAT.  A purchase at this level would equate to a Net Initial Yield of 5.16% allowing for purchasers costs of 6.71% and a capital value of £261 per sq ft

Location
Newbury is an historic market town and the principal town in the west of Berkshire.

Famous for its racecourse, it is now the headquarters of Vodaphone UK and MIcro Focus International.  The town together with Thatcham has a population of over 70,000.

Good communications area available with the M4 (Junction 13) about 4 miles to the south and the A4/A34/A339 are all close by.

Newbury has excellent rail connections to London and the West Country and an approximate journey time to Reading of 25 minutes and to London (Paddington) of 52 minutes.

Description
This is a purpose built health and fitness club built about 20 years ago and comprises a 20m swimming pool, a spa pool, varoius fitness studios, squash courts, saunas and a steam room, nursery facilities and excellent changing rooms.

Originally constructed for the Pinnacle Club for Wates Leisure, it now provides state-of-the-art facilites for Nuffield Health, who offer 12-point health MOT.

There are excellent parking faciliites on site.

Tenure
The property is held freehold

Tenancy
The property is let to Nuffield Health for a term of 35 years on full repairing and insuring terms from 30 December 2002 with 5 yearly reviews.

The  current rent is £661,500 pa and there is an upward only review to the Market Rent on 30 December 2017.

Covenant Strengh
Nuffield Health is a major registered charity which has an operating surplus of £19.7m, funds of £62m and an income of over £839m.

Health Secctor Investment Analysis
The 'Alternative' investment market which would include health and fitness clubs has shown considerable growth and good demand from investors over the last few years.  Alternatives accounted for a third of all UK property investments in the first half of 2017.  It is considered that key drivers of growth are based on demographic technological and structural changes and, as such, these type of investments are less exposed to economic and political uncertainties.  A high proportion of investors are expecting total returns for alternatives to be higher than commercial property.

The David Lloyd Club in Newbury has recently been sold for £17.6m to a pension fund, having a 30 year lease with RPI rent reviews.  This shows an initial yield of 4.5%.

Future Alternative Use and Development
The site has considerable scope for a number of different types of use in the future, subject to planning.

The surrounding areas have been developed for either residential or commercial purposes over recent years.  David Wilson Homes, part of Barratt Homes, have constructed a number of developments on the Racecourse land.  An new development at Nexus Park of six industrial warehouse units has also been recently completed.

Proposal
Offers are invited in excess of £12million subject to contract.

The building has been elected for VAT so VAT will be payable on the purchase price.

It is proposed that the sale will be treated as a Transfer of a Going Concern.

Viewing and Further Information
Strictly through sole agents Davis Brown and by prior appointment on selected viewing dates.

Disclaimer:

Davis Brown for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers, or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Davis Brown or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property; (iv) all rentals and prices quoted are exclusive of VAT (if chargeable)

SUBJECT TO CONTRACT

Map Street View EPC

A rare opportunity to acquire a modern health/leisure investment on the Newbury Racecourse currently producing £661,500 pa (£13.50 psf).

Summary

  • Let to undoubted covenant with 20 years remaining on the lease
  • The property comprises a 49,000 sq ft purpose built modern health and fitness club on a 3.6 acre site having 240 car parking spaces
  • Income of £661,500 pa (£13.50 psf) with review in December 2017
  • Offers are invited in excess of £12,000,000 subject to contract and exclusive of VAT.  A purchase at this level would equate to a Net Initial Yield of 5.16% allowing for purchasers costs of 6.71% and a capital value of £261 per sq ft

Location
Newbury is an historic market town and the principal town in the west of Berkshire.

Famous for its racecourse, it is now the headquarters of Vodaphone UK and MIcro Focus International.  The town together with Thatcham has a population of over 70,000.

Good communications area available with the M4 (Junction 13) about 4 miles to the south and the A4/A34/A339 are all close by.

Newbury has excellent rail connections to London and the West Country and an approximate journey time to Reading of 25 minutes and to London (Paddington) of 52 minutes.

Description
This is a purpose built health and fitness club built about 20 years ago and comprises a 20m swimming pool, a spa pool, varoius fitness studios, squash courts, saunas and a steam room, nursery facilities and excellent changing rooms.

Originally constructed for the Pinnacle Club for Wates Leisure, it now provides state-of-the-art facilites for Nuffield Health, who offer 12-point health MOT.

There are excellent parking faciliites on site.

Tenure
The property is held freehold

Tenancy
The property is let to Nuffield Health for a term of 35 years on full repairing and insuring terms from 30 December 2002 with 5 yearly reviews.

The  current rent is £661,500 pa and there is an upward only review to the Market Rent on 30 December 2017.

Covenant Strengh
Nuffield Health is a major registered charity which has an operating surplus of £19.7m, funds of £62m and an income of over £839m.

Health Secctor Investment Analysis
The 'Alternative' investment market which would include health and fitness clubs has shown considerable growth and good demand from investors over the last few years.  Alternatives accounted for a third of all UK property investments in the first half of 2017.  It is considered that key drivers of growth are based on demographic technological and structural changes and, as such, these type of investments are less exposed to economic and political uncertainties.  A high proportion of investors are expecting total returns for alternatives to be higher than commercial property.

The David Lloyd Club in Newbury has recently been sold for £17.6m to a pension fund, having a 30 year lease with RPI rent reviews.  This shows an initial yield of 4.5%.

Future Alternative Use and Development
The site has considerable scope for a number of different types of use in the future, subject to planning.

The surrounding areas have been developed for either residential or commercial purposes over recent years.  David Wilson Homes, part of Barratt Homes, have constructed a number of developments on the Racecourse land.  An new development at Nexus Park of six industrial warehouse units has also been recently completed.

Proposal
Offers are invited in excess of £12million subject to contract.

The building has been elected for VAT so VAT will be payable on the purchase price.

It is proposed that the sale will be treated as a Transfer of a Going Concern.

Viewing and Further Information
Strictly through sole agents Davis Brown and by prior appointment on selected viewing dates.

Disclaimer:

Davis Brown for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers, or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Davis Brown or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property; (iv) all rentals and prices quoted are exclusive of VAT (if chargeable)

SUBJECT TO CONTRACT

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